Organisational Case Study Kempinski Hotel San Lawrenz Essay Example

relation to a company's objectives. The paper also shows how the absence of a mission statement at KHSL and the company's stated objectives can create confusion among employees regarding the company's organizational culture. Finally, an evaluation is conducted to determine how supportive the present organizational culture is to KHSL's business objectives.

The survey investigates the impact of alterations in organizational civilization on the realignment of the company's aims.

Background Scenario

Over the past few decades, Maltese entrepreneurs have successfully developed and advanced the tourism industry (Goutier 2008). The Maltese Government has played a significant role in supporting this sector by investing in infrastructure improvements and providing specific aid strategies for the Gozo industry (Debono 2009). Notable improvements include increased accessibility between Malta and Gozo through the introduction of three new state-of-the-art ferries, enhancements of cruise-liner disembarking facilities, and improvements in cultural site presentations and buildings. Additionally, the Gozo Tourism Association, representing local tourism service providers, has supported businesses on the island such as KHSL.

The luxurious tourist sector in Gozo is currently facing challenges. Access to the island is primarily through ferry and sea-plane services, making it difficult for the 5 leading hotels to attract visitors. Out of the three 5-star hotels constructed in the last twenty years, only two are still operating, including KHSL.

Company Profile

KHSL is a part of Kempinski Hotels, a high-end hospitality provider in Europe established in Germany in 1897 (Wittwer n.d). The company prides itself on offering excellent service, which is reflected in their rapid expansion across multiple continents, except Australia. Located in the small village of San Lawrenz, on the western side of

Gozo (a 67sq.km island), KHSL covers an area of 70,000 sq.mtrs. The property includes 122 suites, most of which offer views of the Mediterranean sea. KHSL primarily caters to upscale tourists, business professionals, and incentive groups.

KHSL employs 350 people, 20% of whom work part-time to support peak season demand (Attard 2009). The company is known for fully embracing diversity, which is a fundamental characteristic of its organizational identity (Wittwer n.d.). This diversity is evident in the employment of non-EU individuals, who are primarily hired for lower-level positions. Alternatively, this could be seen as a utilization of inexpensive foreign labor.

The hierarchical organizational structure of KHSL (refer to appendix 1) results in top management executives making most decisions.

Specifying Organizational Culture

Different researchers have varying perspectives on company culture. Deal and Kennedy as well as Peter and Waterman (cited in UoL 2008:58) suggest that culture is defined by "the way we do things around here or the rules of the game for getting along in the organization". This definition aligns with KHSL's culture, where members perform tasks, interact with clients, and resolve conflicts. To fit in and be accepted by the organization, new employees must adapt to this organizational culture. Hillis (2004:28) further defines a constructive culture as one that emphasizes achievement, self-actualization, creativity, participation, valuing people, and prioritizing healthy relationships between individuals.

This perceptual experience of organizational civilization partially resembles that of KHSL, where direction indoctrinate employee 's 'to value people ' . This is supported by the employees ' beliefs that the company genuinely values its members by puting up a human resources section with a competent staff compliment. Employees perceive this as practical grounds that the

company wants to construct strong relationships with its employees holding different societal, educational, national and cultural backgrounds. Such a belief takes into consideration the complexness in work-patterns, including displacements, flexi-time and parttime workers.

A Point Of View Expressed By Handy Provinces:

`` Anyone who has spent any clip in another state will appreciate how values, beliefs and precious doctrines affect the manner society is organised.

They greatly value the influence of history, tradition, climate, types of work, state size, and prosperity on their values and beliefs (Handy 1993:169). This is important for KHSL because although they are influenced by German corporate strategy, they also incorporate Mediterranean culture. It should be noted that KHSL adopted high customer standards, consistent service provision, and top-notch hotel facilities as part of their German corporate culture. On the other hand, Maltese culture particularly influences KHSL's organizational culture through the high flexibility, loyalty, and commitment to productivity levels of its employees. Quoting the General Manager of KHSL, "The employees show complete loyalty to the organization as the Maltese were under British rule with high productivity levels and are flexible and capable of adjusting to different economic conditions" (Attard 2009). This theory is supported by the fact that the Gozitan people, who are part of the Maltese archipelago, have a culture of continuous endurance dating back to ancient times when they were conquered and invaded by foreigners who were taken as captives.KHSL's organizational culture is reflected in the Mediterranean climate and the small size of the Maltese archipelago.

The employees at KHSL demonstrate their affection and happiness, which reflects the sunny climate of Malta. It is worth mentioning that Johnson et al. (cited in Mullins, 2007)

developed the cultural web concept, which can be applied to KHSL. Figure 1 illustrates the core elements of KHSL's organizational culture, as perceived by the author and General Manager.

and Unification of the Text

The evaluation of KHSL's organizational culture is carried out using Schein's Theory and Layers of Organisational Culture. This theory is chosen because it is simple and practical to apply in assessing and measuring KHSL's organizational culture. References to other authors and faculty members are included to provide support or criticism of Schein's theory in various statements. According to Schein, Organizational Culture is defined as a shared set of fundamental assumptions that a group learns as it solves external adaptation and internal integration problems. These assumptions are considered valid and are passed on to new members as the correct way to perceive, think, and feel about these problems. Additionally, Schein states that culture forms at the group level.

He suggests that civilization originates from the depths of the unconscious (Schein cited in UoL 2008:71). It is relevant to approach Schein's theory by referring to the three levels of culture.

First Level - Artifacts

At the surface level, one can observe artifacts such as the visible aspect of the organization, structures, and processes (Schein 2004).

Within this degree, various cultural indexes may exist, and these indexes reflect the genuine corporate culture. According to Schein (2004:26), Artifacts are " ... easy to detect and very difficult to decode". Upon entering the hotel, guests can observe the elegantly rustic and aesthetic Maltese architectural design, surrounded by palm trees and vibrant flowers.

Upon entering, individuals immediately feel a sense of openness and warmth from the staff. The building's layout

is open-plan with minimal doors, and upstairs there are spacious and contemporary administrative offices. These physical aspects contribute to KHSL's authentic organizational culture.

The lack of doors in the hotel premises enables both invitees and employees to move freely. As one continues to explore the hotel, it becomes evident that all employees adhere to a formal dress code and speak politely to guests, reflecting the disciplined and formal German corporate culture. However, it is surprising that there are no documented work procedures, policies, or practices. In fact, the organization's mission statement is nowhere to be found, let alone prominently displayed as it should be.

Within the building, there is a staff canteen where employees from various departments take their breaks simultaneously. This facilitates the transmission of organizational culture through the process of socialization, as identified by Anakwe and Greenhaus (1999). In addition, there are conference and meeting rooms located further inside the lobby. These rooms serve not only the general public, but also function as a venue for management meetings conducted on a weekly basis. Decisions are made by top management and then passed down to subordinates.

This is a representation of KHSL's culture, where directors with high authority are consistently under pressure to meet targeted budgets and pass on this pressure to subsidiaries. This culturalization aligns with the definition provided by Linstead and Grafton-Small (1992:333), who suggested that "Culture created by management and transmitted, marketed, sold or imposed on the rest of the organization... which are offered to organizational members as part of the enticing process of achieving status and gaining commitment."

Second Level - Espoused beliefs and values

Schein's second level describes the organization's espoused beliefs and values,

which are ingrained in corporate strategies, goals, and doctrines (Schein 2004). This explains how individual members of the organization justify their actions and behavior.

The core values of KHSL center around their dedication to providing luxurious hospitality. This commitment is driven by the corporate strategy of delivering top-notch service to customers (Wittwer 2006). The fundamental belief is that this can be accomplished through teamwork and cooperation among the devoted employees.

This perception is further reinforced by the fact that KHSL regularly organizes social activities for its employees, such as parties, barbecues, and dinners. Additionally, a core belief in KHSL is that work should always come first and be valued above all else. While employees are aware of this belief, they struggle with it as it contradicts their own family values and beliefs, where family is prioritized over work, a common value in Maltese society (Abela 1999). This conflict often leads to tension among employees.

Third Level- Basic Assumptions

Basic Assumptions are the third level in Schein's theory.

These are unconscious beliefs, perceptual experiences, ideas, and feelings that are taken for granted (Schein 2004:26). Information is gathered through behavior observation to form underlying assumptions. These assumptions are often unacknowledged and unquestioned. According to Schein (2004), the core of organizational culture lies at this level.

Even though basic premises are often unseen, they form the core of the organization's culture. These premises, which are sometimes taken for granted, become important guiding principles for the organization's behavior. In the KHSL culture, some of these basic premises include the belief that employees are responsible, trustworthy, professional, and capable of self-regulation. Additionally, employees believe in a collaborative relationship among themselves. They also trust that management makes

sound strategic and operational decisions that are rarely questioned.

The text suggests that top-level executives are seen as "untouchable" by employees, leading them to assume that KHSL is the preferred choice. This assumption allows employees to believe that leadership is comfortable and rarely generates innovative ideas.

Mullins (2007) explains that the value of a mission statement depends on how much the entire organization recognizes its importance. He argues that it should be conveyed in a way that all employees can understand and accept. Johnson and Scholes (2002:239) describe it as "a statement of the overall direction and purpose of an organization" while de Waal (2007:182) agrees that a high-performance organization creates clarity and a shared understanding of its direction and strategy, resulting in a commonly held strategic mindset among its members.

The mission statement is where the corporate way is defined and disseminated through a meaningful statement. Key authors agree that the mission statement must be clear and unambiguous. However, Perren and Tavakoli (1997) acknowledge that some inexperienced executives have a lot to learn if the main goal of a well-crafted mission statement is to create a sense of mission among the members. They argue that the majority of an organization's members must believe, understand, and act upon the mission statement in order to achieve a sense of togetherness or a common purpose. Mullins (2007) expands on this point by emphasizing the need for organizations to practice what they preach in order for the mission statement to be worthwhile.

The KHSL mission statement, as stated by the General Manager, is as follows: "To be renowned as the most alone hotel in Malta offering guests the 'perfect retreat' to loosen

up in the placid atmosphere of Gozo, showcasing Kempinski as a luxury trade name and guaranting at all times guest satisfaction, while bettering the fiscal return to the proprietor and Kempinski" (Attard 2009). However, it is unfortunate that employees are not aware of this mission statement. It is rarely mentioned in meetings or societal activities, and there are no documented records of this statement. Nevertheless, employees are committed to improving the financial position through loyalty, dedication, and hard work. It can be concluded that employees feel a common purpose in working with KHSL. Connecting employees with the stated business objectives should further enhance the performance of the administration by establishing a well-understood mission statement.

Mr. Attard (2009) claimed that KHSL's objectives are to establish and operate a professional, profitable, and ethical company. He emphasized that this is accomplished by building long-term marketing relationships with respected stakeholders and guests. He also stressed that the company's mission is to provide excellent service to its diverse guests, ultimately ensuring the company's long-term viability.

Analysis of the Supportive and Unsupportive Elements of Organizational Goals

Observations reveal that KHSL's corporate culture contains both supportive and unsupportive aspects in relation to its organizational objectives.

When we analyze KHSL's civilization web using Johnson's et al. pattern, we can observe that some elements of the web support the organizational goals while others are divergent and may conflict. The content of the symbols reflects the organizational culture, highlighting the excellent facilities and high-quality service as perceived by the customer. This contributes to the company's goal of profitability by consistently attracting upscale guests through the portrayal of a sophisticated corporate image. Additionally, the control systems and organizational structure elements

also support the company's goals as they prioritize customer satisfaction and cost-conscious management, aligning with the company's profitability.

Another supportive element is the company's stated goals, which are demonstrated by the function of the Human Resources department, indicating that the company invests in its employees. The Stories section also mentions cultural elements that align with the company's goals, such as caring for employees and maintaining positive relationships with stakeholders. However, some management stories, like the 'heroes' approach, do not seem to align with the company's goal of professionalism. The company's stated goals are further supported in the Rituals and Routines section, where KHSL members believe in collaboration and cooperation with key stakeholders. However, some of the rituals and routines display unprofessionalism, contradicting the hotel's goals.

The text discusses the lack of clarity regarding the mission statement, aims, company policies, and work processes at the organization. Additionally, it points out that the management does not involve the workforce in decision making and attempts to impose its culture on employees, which deviates from the company's objective of long-term sustainability.

Other Supportive Models

By examining various theories, models, and concepts of organizational culture and comparing them to the business goals stated by the General Manager, this paper critically assesses if the administration supports these objectives. Typically, this analysis would rely on a mission statement; however, KHSL does not have one, which is a limitation of this study.

According to Hillis (2004), organizational culture values people and healthy relationships. This is evident in KHSL, as the company heavily invests in Human Resources, supporting long-term business sustainability. Handy (1993) suggests that organizational culture is influenced by history, tradition, and location. This has been proven in

KHSL's culture, resulting in a competitive advantage for Maltese employees who possess commitment, flexibility, and loyalty shaped by Maltese history. This contributes to KHSL's profitability, the main reason for the organization's existence. Looking at Schein's three levels of culture, the physical characteristics of KHSL are part of the company's values and contribute to its organizational goals of providing high-quality services.

These physical elements, identified through the first bed defined by Schein, not only supplement the professionalism attack and long-term sustainability stated in the company's ends. Additionally, the German corporate civilization of subject and formality is imposed on the Maltese employees, further contributing to professionalism. The civilization of socialization mentioned by Anakwe and Greenhaus (1999) and Schein's (2004) 2nd degree is apparent at KHSL where employees and direction behavior compliments the long-term concern relationship end.

Within KHSL's civilization, employees' personal properties are considered part of Schein's third level, and these properties are supportive of the company's goals.

Unsupportive

On the other hand, it can be argued that there are elements within the organizational culture that do not complement and support the company's goals. One of these elements is the informal and undocumented work practices, policies, and procedures. This culture is present among the top management team and is unknowingly passed on to subordinates. This cultural approach is not in line with the company's professionalism and its aim to provide high-quality service.

Furthermore, the imbalance and conflict between work and household civilizations within the relationship between management and employees obstructs the achievement of certain company objectives. Additional unsupportive factors include the cultural behavior of senior management, who are perceived as untouchable, leading employees to believe that management is complacent and lacking innovative

ideas. This poses a threat to the long-term sustainability of the business.

Decision

It can be reasonably concluded that organizational culture, although defined in various ways by different writers and scholars, generally agrees that the core components are values and beliefs. These are initially shaped and embraced by the organization's management behavior and then passed down to all members of the organization, who in turn adhere to and assume that this culture is correct. KHSL, a modern resort on the island of Gozo, strives to thrive in a local upscale market and is not unfamiliar with this situation. It is suggested by the author that KHSL's organizational culture closely resembles Handy's theory, which attributes such culture to the historical background, traditions, climate, and size of the country in which it operates.

The survey also reveals that using Schein's theory and Johnson et al's cultural web model, KHSL's organizational culture largely supports its business goals which are surprisingly not derived from a mission statement. However, other important elements of organizational culture were found to hinder and sometimes even contradict these same goals. Since organizational culture is a dynamic and evolving reality, it needs to be thoroughly assessed at a specific point in time in terms of long-term organizational goals. It appears that KHSL's managers, acting as leaders, try to impose some of their own values and assumptions on employees. This could be counterproductive as KHSL's employees should be given a participatory role in shaping the culture within their respective organization. Therefore, it is recommended that in order to further support KHSL's long-term business objectives, the management should undergo a cultural analysis with a positive approach to formally state and

explain the company's mission statement to all members of the organization.

In addition, it is important to implement a cultural change program in order to establish a well-structured direction system for the company. This should be based on documented policies, processes, and work practices. Over time, these changes will become integrated into the beliefs, values, and underlying assumptions of the organizational culture. By doing so, it will help members of the organization better comprehend their roles and responsibilities, ultimately leading to more effective contributions towards the business objectives.